AZ HB2357

Changes employer contribution methodology for the Elected Officials' Retirement Plan beginning July 1, 2018, from a fixed 23.5% rate to a level percent of compensation basis determined by actuarial valuations to meet normal cost and amortize unfunded accrued liability over a closed 20-30 year period.

Establishes a stabilization reserve account to hold 50% of excess valuation assets when the plan is overfunded above 100%, and requires use of these reserves to limit funding ratio declines to no more than 2% when the plan has an unfunded liability.

Removes the prior provision that would have transitioned to a rolling amortization period and minimum 10% contribution rate beginning July 1, 2044.

Requires that combined employer and member contributions in any fiscal year must equal at least the actuarially determined normal cost for that fiscal year.

Continues the $5 million annual state general fund appropriation to the plan for fiscal years 2013-2014 through 2042-2043 to supplement normal cost and unfunded liability amortization.